2015 (5) TMI 1154

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.... : Shri K.R. Vasudevan, Advocate O R D E R Per N.V. Vasudevan, Judicial Member This appeal by the Revenue is against the directions of the DRP u/s. 144C(5) dated 27.11.2014. The grounds raised by the Revenue in the appeal reads as follows:-  "1. The directions of DRP is opposed to law and facts of the case. 2. The Hon'ble DRP has erred in directing the TPO to include forex gain/loss....

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....ation of the sale proceeds should be considered as part of operating revenue while computing the ALP. 3. There is no dispute that Transaction Net Margin Method (TNMM) was the most appropriate method for determination of ALP. The Profit Level Indicator (PLI) chosen was operating profits to total revenue. The AO refused to accept the claim of the assessee that foreign exchange gain should also be t....

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....e ld. DR reiterated the stand of the Revenue as reflected in the grounds of appeal filed before the Tribunal. We are of the view that the stand taken by the Revenue is unsustainable. It is not disputed that the foreign exchange fluctuation and the resulting gain to the assessee was in respect of the sale proceeds which the assessee had to realize. In such circumstances, it cannot be contended by t....